General Electric Co. (GE - Free Report) recently announced that it has received a contract from German project developer Energiekontor AG to build 41 wind turbines. GE will provide 2.75-103 wind turbines, which offer a large 165 foot blade for better and more efficient energy capture along with noise reduction feautures.
Energiekontor also signed a service contract with GE, which covered maintenance, routine inspections, remote monitoring of the wind turbines and also providing spare parts for them. As per this contract, GE will provide on-site technicians with exhaustive instruction manuals to make sure the bottlenecks regarding troubleshooting and fault rectification are easily solved and required services catered to.
After this venture, the new units created shall produce 250 million kilowatts of electricity annually, which would cater to more than 75,000 German households. This adds another feather to GE’s cap in the European market.
Energiekontor AG is a wind power project developer, which currently has operations all across Europe. It currently has investments of over €760 million for building wind farm projects with 79 wind parks already operational.
GE recently reported its fourth quarter and full year financial results for 2011. Revenues came in at around $147 billion for the year, which slightly dropped around 2% annually. However, management, still quite optimistic about its outlook for 2012, has showed enough vigor and determination with regard to varied product innovations and market share proliferation strategies.
Even though GE is a formidable giant in its industry, it continues to face stiff competition from Exchange Income Corp., LSB Industries, Inc. and ABENGOA SA ADR.
The current Zacks Consensus Estimates for the first quarter of 2012 and for fiscal 2012 are 33 cents and $1.55, respectively. The company currently retains a Zacks #4 Rank, which translates into a short-term ‘Sell’ rating. However, we presently maintain our ‘Neutral’ recommendation on the stock.